Real Estate Contract Negotiations – What Is Negotiable?
Are you entering into a real estate contract? Is your heart racing? Are you making the right decision? Don’t worry. Breathe. Real estate contracts aren’t one size fits all. Many aspects of a real estate contract are negotiable. So, if you are about to enter one, it might be a good idea to look into the various things you can negotiate.
What Things Are Negotiable in Real Estate Contracts?
A real estate contract is a legally binding agreement between the buyer and seller. While real estate contracts are legally binding, it doesn’t mean you can’t negotiate. Fortunately, almost every aspect of a real estate contract is negotiable. Here are a few examples.
The purchase price is not always set in stone. Oftentimes, buyers and sellers can negotiate the price until they reach an agreement that meets both of their needs.
Unfortunately, closing the deal on a real estate contract comes with some final costs called closing costs. These costs can include title insurance, appraisal fees, loan origination fees, and more. Fortunately, these costs can be negotiated. Through negotiation, the buyer and seller can decide who pays these final costs and how much the costs will be.
The closing date is the exciting time when the real estate contract is finalized. If you are the seller, you have sold your house. If you are the buyer, you are the proud owner of a new home. Either way, congratulations. However, this date is another aspect of the contract that is negotiable.
When selling a home, you may not be able to move right away, so pushing the closing date out may be beneficial. When buying a home, you may have another mortgage or rental obligation you have to fulfill, so moving the closing date may be helpful. Both parties can negotiate the closing date to ensure it is on a day that works for them.
Home Inspection Contingency
A home inspection contingency allows the buyer to have the property inspected by a professional home inspector before finalizing the purchase. This process identifies issues with the property that may not be seen by the untrained eye. This contingency usually allows the buyer to end the contract if the result of the inspection shows safety hazards or other issues with the roof, foundation, electrical system, plumbing, HVAC system, appliances, and more.
If the property needs repairs, the buyer and seller can negotiate who is responsible for making those repairs and what the cost will be.
Not everyone has the money to buy a home or property lying around. It’s important for both the buyer and seller to work together to find financing terms that are fair and reasonable for everyone involved. A Bucks County real estate lawyer can help guide the negotiation process and ensure the final terms are legally binding and enforceable.
In some cases, the buyer may be interested in purchasing something that is already in the home, like appliances, furniture, or other things. The ownership of these items can be negotiated in the real estate contract. Several aspects and contingencies can be negotiated when negotiating real estate in Pennsylvania. However, if you choose the best real estate lawyer Bucks County has to offer, you’ll be in good hands. Contact the professionals at Olen Law Office for help with your real estate negotiation.